Vietnam Free Trade Agreements Australia

With upcoming trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Vietnam-EU (EVFTA) – Vietnam appears to be prioritizing trading partners outside ASEAN. The Vietnamese government should also continue on the path of its reforms – strengthening the banking sector, eliminating corruption, refining legal and tax structures, and improving trade facilitation. Vietnam has been one of Australia`s fastest growing trade markets in the ASEAN region, with an average annual growth of 11.9%. Under WTO trade rules, countries are generally unable to distinguish between their trading partners. If a country were to grant a trading partner a special advantage, such as a lower duty on one of its products, it must be granted to all other WTO Members. This principle is called most-favoured-nation treatment. Increased trade is creating more jobs in Australia and providing more opportunities for Australian businesses. Learn how to reap the benefits of free trade agreements. Read more This realignment has already opened up greater opportunities for Australian businesses. In 1990, two-way trade between the two countries was $32.3 million, but by 2019 it had grown to about $11.8 billion. This pales in comparison to the $252 billion in mutual trade between Australia and China, and of course, this will never be realistically achieved. However, the report illustrates areas where there is potential for further growth in Australian trade with Vietnam and the potential to alleviate some of the concern that has developed about Australia-China relations.

However, some exceptions are allowed. For example, countries may enter into a free trade agreement that applies only to goods traded within the group and discriminate against goods imported from outside. Unlike Australia`s three major Asian trading partners – China, Japan and South Korea – Vietnam still has a growing population that is expected to grow from 98 million to 120 million by 2050. In addition, Australia`s 300,000-strong Vietnamese community is able to provide strong ties and cultural knowledge to take advantage of opportunities in emerging markets. While Australia and Vietnam do not have bilateral free trade agreements, there are now a number of regional agreements in which both countries participate: the Comprehensive Progressive Trans-Pacific Partnership (CPTPP); the recently signed – and led – – Regional Comprehensive Economic Partnership (RCEP); and the ASEAN Free Trade Agreement between Australia and New Zealand (AANZFTA). The government has implemented ambitious structural reform to address economic challenges such as public debt, equality between state-owned enterprises, non-trade barriers, as well as environmental sustainability, social justice and emerging macroeconomic stability issues. Australia has trade initiatives or trade agreements with the countries or groups of countries listed in the table below. Free trade agreements provide a mechanism to facilitate trade in goods. Each agreement contains information and links to relevant legislation, policies and opinions on rules of origin and access to preferential tariffs. Free trade agreements can also have additional drawbacks.

Such agreements are likely to trigger aggressive competition from foreign competitors on local businesses – particularly in the agricultural sector, including meat and dairy products from the EU, Australia and Canada. Vietnam became the 150th member of the WTO in 2007 and, after accession, promised to fully comply with the WTO Agreements on Customs Valuation, Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) Measures. The United States and Vietnam concluded a bilateral trade agreement (FTA) in 2000, which entered into force in 2001. Free trade agreements (FTAs) are when two or more countries agree on the terms of trade between them. They determine the value of the duties and duties that countries impose on imports and exports. In 2007, with Vietnam`s accession to the World Trade Organization (WTO), it took an important step towards integration into world trade and the subsequent conclusion of several free trade agreements. Vietnam Briefing is produced by Dezan Shira & Associates. The company supports foreign investors across Asia from offices around the world, including Hanoi and Ho Chi Minh City. Readers can write to vietnam@dezshira.com for more support in doing business in Vietnam. Vietnam`s Ministry of Planning and Investment predicted that the CPTPP could increase Vietnam`s GDP by 1.3 percentage points by 2035, while the EVFTA could increase GDP by 15 percent. .